Ricoh Swings Accord to Acquire IKON

TOKYO--Ricoh Co. has reached a definitive agreement to acquire IKON Office Solutions through Ricoh's wholly owned U.S. distribution subsidiary, Ricoh Americas, for approximately $1.62 billion ($17.25 per share). The deal is supported by Ricoh and IKON and has been approved by the board of directors for both organizations. The offer represents a 33 percent premium over IKON's daily closing price of the 60 days leading up to the transaction. Ricoh will finance the deal through its own resources and external funding. The transaction is subject to approval of North American and European antitrust entities.

IKON also announced that it plans to close 23 of its 71 offices that provide document management products and services to the legal industry. As a result, it will lay off 265 people in the United States and another 50 in Europe.